January – March 2008 Interim Report 1 UPDATED INFORMATION 5 SHARE 6 MANAGEMENT REPORT 16 BRANDS AND 20 INTERIM FINANCIAL BUSINESS FIELDS STATEMENTS (CONDENSED)

1 Key Facts 6 Business Development 20 Income Statement 2 Key Events 12 Net Assets, Financial Position 21 Balance Sheet and Results of Operations 22 Statement of Recognized 15 Outlook Income and Expense 23 Cash Flow Statement 24 Notes to the Financial Statements

Key Figures

VOLKSWAGEN GROUP

Q1 1 Volume Data 2008 2007 % Deliveries to customers ('000 units) 1,572 1,470 + 7.0

of which: in Germany 241 235 + 2.6

abroad 1,331 1,235 + 7.8

Vehicle sales ('000 units) 1,604 1,501 + 6.9

of which: in Germany 238 237 + 0.7

abroad 1,366 1,265 + 8.0

Production ('000 units) 1,649 1,558 + 5.9

of which: in Germany 549 564 – 2.6

abroad 1,101 994 + 10.7

Employees ('000 on Mar. 31, 2008/Dec. 31, 2007) 332.1 329.3 + 0.8

of which: in Germany 168.9 168.7 + 0.1

abroad 163.2 160.6 + 1.6

Q1 Financial Data (IFRSs), € million 2008 2007 % Sales revenue 27,013 26,640 + 1.4 Operating profit 1,311 1,085 + 20.9 as a percentage of sales revenue 4.9 4.1 Profit before tax 1,366 1,069 + 27.8 as a percentage of sales revenue 5.1 4.0

Profit after tax 929 740 + 25.6

Cash flows from operating activities 2,180 3,926 – 44.5 Cash flows from investing activities 2,899 3,643 – 20.4

2 Automotive Division Cash flows from operating activities 2,195 3,553 – 38.2 3 Cash flows from investing activities 1,328 1,669 – 20.5 of which: investments in property, plant and equipment 958 767 + 25.0 as a percentage of sales revenue 3.9 3.2 4 capitalized development costs 431 330 + 30.9 as a percentage of sales revenue 1.8 1.4

Net cash flow 867 1,884 – 53.9

Net liquidity at Mar. 31 14,218 9,418 + 51.0

1 Volume data including the vehicle production investments Shanghai-Volkswagen Automotive Company Ltd. and FAW-Volkswagen Automotive Company Ltd. These companies are accounted for using the equity method. All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. 2007 deliveries updated on the basis of statistical extrapolations. 2 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. 3 Excluding acquisition and disposal of equity investments: Q1 €1,269 million (€913 million). 4 See table on page 25.

1

Key Facts

> operating profit in the first quarter of 2008 up significantly year-on-year at €1.3 billion > At €1.4 billion, profit before tax exceeds previous year's figure by €0.3 billion > Group sales revenue increases by 1.4% year-on-year to €27.0 billion > At 3.9% (3.2%), ratio of investments in property, plant and equipment (capex) to sales revenue below the long-term average > At €14.2 billion, net liquidity in the Automotive Division recorded a further improvement compared with the end of 2007 > Share of voting rights in Scania AB increased to 68.60%, subject to antitrust approvals > Group models successful: - Deliveries to customers worldwide up 7.0% year-on-year to 1.6 million vehicles; Group market share at record level in Germany - All-time record sales in the first quarter for the majority of brands - Growth remains strong in China, South America and Central and Eastern Europe; strong growth rates for sales in Russia and India - Market debut for Passat CC and Routan - World premiere of the new and the new Audi A4 Avant at the Geneva International Motor Show; SEAT unveils impressive Bocanegra design study - Sharan BlueMotion expands BlueMotion model range; new Škoda Superb also launched as GreenLine version

2

Key Events

VOLKSWAGEN GROUP LAUNCHES IMPRESSIVE In addition, it offers a surprisingly spacious interior, NEW MODEL ROLLOUT comes with an affordable price tag and will be on After its record year in 2007, the Volkswagen Group began sale across Europe as of late summer 2008. The 2008 in a similar vein by presenting world premieres of a Volkswagen Passenger Cars brand demonstrated its range of new models and concepts at international motor potential as regards environmental compatibility and shows. energy efficiency with three further world premieres. Equipped with a high-tech diesel engine, electric motor Passat CC debuts in Detroit and 7-speed direct shift gearbox, the Golf TDI Hybrid In January 2008, Volkswagen unveiled its premium mid- concept car uses a mere 3.4 liters of diesel (combined) per

size model – the new Passat CC – at the North American 100 kilometers and emits only 89 grams of CO2 per International Auto Show in Detroit. This four-door coupé kilometer. In addition to internal combustion mode and combines dynamic power with superior comfort, as well as mixed mode operation, this exceptionally environmentally offering a sporty yet uncompromisingly spacious interior. friendly and economical vehicle can also run in emission- With the new Dynamic Drive Control feature, the vehicle free electric mode. The Passat Variant TSI EcoFuel1 can be driven in "normal", "sport" or "comfort" mode. ushered in a new era of natural gas-driven vehicles in Progressive technology also features prominently in the Geneva. With its 110 kW (150 PS) TSI engine, the Passat is design of the Passat CC, which comes with pioneering far livelier than other gas-driven vehicles while still assistance systems such as the "Lane Assist" lane-keeping remaining remarkably fuel-efficient. The latest addition to assistant – used for the first time here – or the automatic the Volkswagen Passenger Cars brand's BlueMotion series "Park Assist" function. – the Sharan BlueMotion2 – was also presented in Geneva. Compared with the conventional model, the Sharan World premiere of the Routan at the Chicago Motor Show BlueMotion uses around 0.7 liters less fuel (combined) per The new Volkswagen Routan made its debut at the Chicago 100 kilometers and, at 159 grams per kilometer, reduces

Motor Show in February. This seats seven CO2 emissions substantially. Another key event at the passengers and combines the best of European design, Volkswagen Passenger Cars stand was the European workmanship and handling with equipment features and premiere of the Passat CC. a range of engines geared towards the US market. The The Audi brand celebrated the world premiere of the vehicle interior boasts high-quality materials together new Audi A4 Avant. The latest generation of the successful with comfortable and variable seat rows. The Routan was premium estate is a byword for high driving dynamics and developed together with LLC and is produced in uncompromising quality. In addition, the vehicle has a Canada for the North American market at Chrysler's plant sporty side that is ideal for recreational driving. The range in Windsor, Ontario. of engines packs an even more powerful punch than its predecessor model, while at the same time reducing International Motor Show in Geneva consumption and emission levels. The Volkswagen Group showcased a whole host of new and The main attraction at the Škoda brand stand was the impressive vehicles at the International Motor Show in new Škoda Superb. The Czech brand's flagship model was Geneva. given a complete makeover with further improvements in The Volkswagen Passenger Cars brand treated visitors design and quality. One feature that made its debut in the to an extensive vehicle rollout, with many new models new Škoda Superb was the Adaptive Frontlight System making their international debut. Some 34 years after the (AFS), an intelligent light system that adjusts the vehicle's first model generation was launched in Geneva, the new headlight beam to suit the driving situation, vehicle speed Scirocco was unveiled to the world in the same surroundings. and weather conditions at any given time. An environ- This sports car wins over motoring enthusiasts with its mentally friendly GreenLine version of the new Superb concise design, sporty performance, innovative technology will also be available. and a powerful range of charged engines in all models.

1 No binding consumption and emission figures are available at present for this model. 2 Consumption and emission data can be found on page 11 of this Report. UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 3

Key Facts > Key Events

At the SEAT brand stand, the Bocanegra concept proved a As in the previous year, the Golf GTI was among those particular attraction for visitors. With its prominent front singled out for awards. This was primarily due to its end and progressive, clear-cut body line, the sports coupé suspension and to its appealing balance of sportiness and conveys both dynamism and emotion. It also gives a comfort. foretaste of the design of future SEAT models that are to be In January, auditing firm PricewaterhouseCoopers rolled out. presented the Volkswagen Group with the "Global Lamborghini presented the Gallardo LP 560/41, a Automotive Shareholder Value Award" for 2007. Over a worthy successor to the most successful Lamborghini one-year and three-year period, Volkswagen posted the model of all time. The new Gallardo offers 40 PS more highest increase in shareholder value of all listed power than its predecessor while marginally reducing its competitors in the global automotive industry, as well as vehicle weight. Fuel consumption and emission levels the highest return for its shareholders. were also reduced by an impressive 18%. The readers of "auto motor und sport" magazine cast The Bentley brand caused a stir at the Geneva Motor their votes for the "Best Cars of 2008" again at the end of Show with its new Bentley Brooklands1 model. The luxury January. Six out of a total of ten awards went to the coupé with the power of a super sports car marks a return Volkswagen Group: the Polo topped the small car category to the roots of the Bentley brand; the level of interest from for the 14th time, while the Audi A3 and Audi A6 defended customers has already exceeded all expectations. last year's victories in the lower mid-range and upper mid- Volkswagen Commercial Vehicles unveiled its Caddy range segments respectively. The Audi A4 returned to pole Maxi Life EcoFuel concept car to a global audience at the position in the mid-size segment, while the Audi R8 won Geneva Motor Show. This deceptively spacious natural the coveted number one spot in the sports car category. gas-driven vehicle is almost ready for start of production, The Multivan has reigned supreme in the segment for which is expected to be as early as the end of 2008, when six years. In addition, the Volkswagen Passenger Cars Germany's best-selling natural gas vehicle will also be brand improved its ratings considerably in all categories. available as a Maxi version – 47 centimeters longer than The success of the Tiguan is continuing in 2008. the standard Caddy. Readers of "OFF ROAD" magazine voted it SUV of the year in February out of a total of 20 vehicles. Shortly ARRAY OF AWARDS FOR THE VOLKSWAGEN GROUP afterwards, the Tiguan won the highly prized "Auto1 On January 17, 2008, the Volkswagen Group was pre- Trophy" in the "Off-Road and SUV" category. Over 40 sented with the Golden Angel 2008 award by German million readers and experts from the AutoBild Group were automobile club ADAC for its technological combination invited to vote for the best vehicles out of 74 new models. of the latest TSI engine and 7-speed direct shift gearbox. In the mid-size category, the new Audi A4 was voted "Auto The exceptional efficiency of this combination, which is 1 of Europe". used exclusively by Volkswagen, enabled it to top the In March 2008, readers of consumer magazine "Guter "Innovation and Environment" category. Rat" voted for the "Most Sensible Car 2008", choosing Also on January 17, 2008, Volkswagen celebrated a from a total of 36 models in three categories. In the double victory with its innovative TSI engines at the "Saloon" category, the new Audi A4 emerged triumphant prestigious "What Car? Awards" in London. The Golf 1.4 thanks to its spaciousness, low consumption and state-of- TSI triumphed for the second year running in the hotly the-art safety systems. First place in the "Estate/Van" contested "Best Small Family Car" category. Another repeat category went to the new Golf Variant. This can be winner was the Eos 2.0 TSI, which once again collected an attributed above all to the environmentally friendly fuel award in the "Best Open Top Car" category. consumption and emission levels, the high level of driving In its January issue, US specialist magazine "Car and comfort and the clever space concept. Driver" voted its "Ten Best Cars of 2008", featuring a total of 50 models from US, European and Asian manufacturers.

1 Consumption and emission data can be found on page 11 of this Report. 4

PRODUCTION MILESTONES PORSCHE TO INCREASE STAKE IN VOLKSWAGEN On January 17, 2008, the Braunschweig plant produced At the beginning of March 2008, after approval by the its 30 millionth rear axle. This impressive milestone in the Supervisory Board of Porsche Automobil Holding SE, plant's production history was celebrated by management Porsche publicly announced its intention to increase its and employees together with invited guests. Rear axles equity interest in Volkswagen AG from the current 31% to have been produced in Braunschweig since 1979; today, over 50%. The Board of Management of Volkswagen AG together with other component plants, it supplies rear welcomes Porsche's investment and sees it as an axles for the Golf, Touran, Tiguan and Audi A3 models. opportunity for a well positioned automobile On February 1, 2008, the one millionth New Beetle manufacturer to usher in an entirely new era. rolled off the production line at Volkswagen de México in Puebla, ten years after production began. At the same ANNUAL GENERAL MEETING time, this is the seven millionth vehicle to be produced at Volkswagen AG's 48th Ordinary General Meeting was held this Mexican plant. During a ceremony attended by 300 in the Congress Center Hamburg on April 24, 2008. With guests of honor – including Mexican President Felipe 57.86% of the voting capital present, the ordinary Calderón Hinojosa – the Chairman of the Board of shareholders formally approved the actions of the Board Management of Volkswagen AG, Prof. Dr. Martin of Management and the Supervisory Board, the Winterkorn, stressed the key role played by Puebla in the authorization to purchase and utilize own shares, and an Group's growth strategy in North America. intercompany agreement. Furthermore, they appointed On February 5, 2008, the management and employees PricewaterhouseCoopers AG Wirtschaftsprüfungsgesell- of the Kassel plant celebrated the production of its one schaft as the auditors for fiscal year 2008 and to review the millionth direct shift gearbox (DSG). Series production of condensed consolidated financial statements and interim the DSG, which is known for its fuel efficiency, sportiness management report for the first six months of 2008. Mr. and shifting comfort, has taken place at the Kassel plant Christian Wulff and Mr. Walter Hirche were appointed to since 2003. With the new 7-speed DSG, Volkswagen has the Supervisory Board for a full term of office. Prof. Dr. now presented the second generation of the best-selling Heinrich von Pierer stepped down from his position on gearbox. the Volkswagen AG Supervisory Board as of the end of the Annual General Meeting; in light of this, the Annual VOLKSWAGEN INCREASES SHARE OF VOTING General Meeting also elected Dr. Wolfgang Porsche as his RIGHTS IN SCANIA successor for a full term of office. The Annual General Subject to antitrust approvals, Volkswagen will acquire a Meeting also resolved to pay a dividend of €1.80 per further 30.62% of the voting rights in Scania, thereby ordinary share and €1.86 per preferred share for fiscal increasing its share of voting rights in the Swedish year 2007. The motions by Porsche Automobil Holding SE company from 37.98% to 68.60%. Volkswagen reached and Hannoversche Beteiligungsgesellschaft mbH to an agreement with Investor AB and various Wallenberg amend the Articles of Association of Volkswagen foundations regarding the purchase of their entire Aktiengesellschaft did not obtain the necessary majority. shareholdings in Scania. By so doing, the Volkswagen The results of the votes can be accessed on the Internet at Group is stressing the importance it attaches to this equity www.volkswagenag.com/ir. interest. Volkswagen continues to expect positive business development and strong growth from Scania. The aim is to increase long-term value for all shareholders. Accordingly, Scania will be preserved and further developed as an independent premium brand.

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 5

Volkswagen Share

There was a clear downward trend on equity markets remained stable in a weak environment and almost worldwide in the first quarter of 2008. At the beginning of maintained their level, bolstered by positive sales and the year, prices slid significantly within a short period of financial data from the past fiscal year. The share price time, leading to one of the weakest starts to a year in rose substantially in March. history. This was primarily due to the continuing crisis on On March 26, 2008, Volkswagen AG ordinary shares the US credit markets and resulting fears of a substantial recorded their highest daily closing price in the reporting downturn in global economic growth. In February, share period, namely €186.54. At their low on January 21, 2008, prices moved sideways at a low level, supported by interest they were trading at €148.43. At the end of the first rate cuts in the USA. Towards the end of the reporting quarter, ordinary shares closed at €183.64, an increase of period, further negative reports from the financial sector, 17.6% compared with the end of 2007. Volkswagen AG together with all-time highs for the euro and for oil prices, preferred shares performed similarly, also peaking on again drove down share prices significantly. March 26, 2008 at €107.80. Their lowest price was €89.20 On March 31, 2008, the DAX closed at 6,535 points, on January 23, 2008. On March 31, 2008, they were 19.0% below the level at the end of 2007. The DJ Euro quoted at €105.25, representing a 5.3% increase STOXX Automobile stood at 305 points at the end of the compared with December 31, 2007. first quarter; compared with the end of December 2007, Information and explanations on earnings per share this corresponds to a fall of 14.1%. can be found in the notes to the consolidated interim The performance of Volkswagen shares in the first financial statements. quarter of 2008 was markedly different to the overall Additional Volkswagen share data, plus corporate market trend. In the first two months of the year, the news, reports and presentations can be downloaded from prices of Volkswagen ordinary and preferred shares our website at www.volkswagenag.com/ir.

SHARE PRICE DEVELOPMENT FROM DECEMBER 2006 TO MARCH 2008 Index based on month-end prices: December 31, 2006 = 100

250

225

200

175

150

125 Volkswagen ordinary shares

Volkswagen preferred shares 100 DAX

75 DJ Euro STOXX Automobile

DJ FMAMJ JASOND JFM

6

Business Development

GENERAL ECONOMIC DEVELOPMENT The Chinese economy is continuing to grow at a fast pace. The global economy slowed appreciably in the first quarter Owing to the dramatic increase in inflation, efforts to curb of 2008. This was due above all to the effects of the credit economic growth have been intensified. The Japanese crisis in the USA and the persistently high commodity economy continued to slow in the first quarter of 2008. prices. Growth in the emerging Asian economies, in Latin Although economic growth in Western Europe slowed America and in Central and Eastern Europe weakened, in the first three months of 2008, it did so to a lesser extent but was still above average. than in the USA. With the exception of Hungary, economic At the beginning of 2008, the US Federal Reserve growth in Central and Eastern European countries attempted to stave off the impending recession through remained strong. However, prospects have deteriorated massive interest rate cuts. The US dollar fell to a record recently owing to increasing inflationary tendencies and low against the euro. The Mexican economy recorded a falling exports. significant decline in its growth rate in the first quarter of To date, the downturn in global economic growth has 2008 due to its heavy dependence on developments in the had less of an impact on the performance of the German US economy. economy than had been feared. Exports to emerging In Argentina, inflationary pressures were high owing markets in particular proved to be a key pillar of the to the country's continued dynamic economic growth. The economy. However, consumer spending continued to fall slowdown in the global economy and the strong real led to short of expectations in the first quarter of 2008, too, in weaker overall economic growth in Brazil. The South spite of the sustained positive labor market trend. This can African economy suffered a downturn at the beginning of be attributed above all to continuing economic uncertainty the year due to energy supply problems, causing the rand and rising food and energy prices. to weaken considerably.

EXCHANGE RATE MOVEMENTS FROM DECEMBER 2006 TO MARCH 2008 Index based on month-end prices: December 31, 2006 = 100

125

120

115

110

105

EUR to USD 100 EUR to JPY

EUR to GBP 95

D JFMAMJJASONDJFM

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 7

> Business Development Net Assets, Financial Position and Results of Operations Outlook

DEVELOPMENT OF AUTOMOTIVE MARKETS In South Africa, the volume of the passenger car market In the first quarter of 2008, new passenger car fell dramatically compared with the same period in 2007 registrations worldwide rose slightly as against the due to restrictive lending. comparative prior-year period. While the Central and In the Chinese market, the number of new passenger Eastern Europe, South America and Asia-Pacific regions car registrations continued to rise extremely sharply in the in particular recorded above-average growth rates, period from January to March 2008. This meant that, as in demand fell in South Africa, North America, Western previous years, the world's second largest sales market Europe and Japan. remained the main driver of global automotive demand. Overall, vehicle sales in the US market were down In Japan, passenger car sales were marginally below the substantially year-on-year in the period from January to level of the first quarter of 2007. The positive development March 2008. Besides the effects of the economic and in the Indian passenger car market continued in the credit crisis, increased fuel prices were the main reason reporting period, although the pace of growth has slowed for the lowest level of unit sales since 1998. The decline in somewhat. new registrations of light commercial vehicles was far Overall demand in the Western European passenger greater than for passenger cars, which are more fuel- car market in the first three months of 2008 remained efficient. Sales increased in the Canadian automotive below the level in the same period in 2007. This downturn market in the first three months of the year, while new was driven substantially by changes in tax legislation in a registrations in Mexico fell below the prior-year level. number of key markets. Italy and Spain in particular The pick-up in the Brazilian passenger car and suffered significant falls in demand. By contrast, markets commercial vehicle market continued in the first quarter in Central and Eastern Europe enjoyed predominantly of 2008, exceeding the record levels of the previous year. double-digit growth. By far the highest volume increases The above-average growth is primarily attributable to in the region were recorded by Russia and the Ukraine. In more favorable financing conditions. Growth also Germany, the number of new passenger car registrations continued in Argentina, with sales reaching a new high. improved on the prior-year quarter, which was impacted in particular by the VAT increase as of January 1, 2007.

8

VEHICLE DELIVERIES WORLDWIDE generated above-average growth rates. In the premium In the first three months of 2008, the Volkswagen Group vehicle segment, Lamborghini recorded an impressive delivered 1,571,895 vehicles to customers worldwide. 21.5% increase. This corresponds to an increase of 7.0% compared with The table on this page gives an overview of deliveries to the same period in 2007. The Volkswagen Passenger Cars, customers by market and the respective passenger car Škoda and Volkswagen Commercial Vehicles brands market share in the first three months.

DELIVERIES TO CUSTOMERS BY MARKET FROM JANUARY TO MARCH1

Share of passenger Deliveries (units) Change car market (%) 2008 2007 (%) 2008 2007 Europe/Remaining markets 936,789 917,703 + 2.1

Western Europe 771,716 777,088 – 0.7 18.6 18.6

of which: Germany 240,654 234,631 + 2.6 32.3 31.6

United Kingdom 116,374 112,489 + 3.5 15.3 15.1

Spain 82,508 93,444 – 11.7 21.8 21.5

Italy 74,281 77,511 – 4.2 10.7 10.5

France 63,881 62,294 + 2.5 10.6 11.7

Central and Eastern Europe 128,146 108,538 + 18.1 10.7 12.0

of which: Russia 22,643 14,366 + 57.6 3.5 3.2

Poland 20,069 17,306 + 16.0 21.0 21.5

Czech Republic 18,917 18,831 + 0.5 52.8 58.9

Remaining markets 36,927 32,077 + 15.1

of which: Turkey 15,442 11,803 + 30.8 12.3 12.9 2 North America 116,752 123,772 – 5.7 2.8 2.7

of which: USA 72,224 72,731 – 0.7 2.0 1.9

Mexico 34,815 41,188 – 15.5 13.1 14.4

Canada 9,713 9,853 – 1.4 2.7 2.9

South America/South Africa 209,117 188,233 + 11.1 18.9 19.2

of which: Brazil 147,752 119,809 + 23.3 24.8 25.4

Argentina 33,111 30,307 + 9.3 22.8 26.2

South Africa 19,558 28,058 – 30.3 18.9 22.5

Asia-Pacific 309,237 239,889 + 28.9 7.5 6.3

of which: China 268,204 202,637 + 32.4 18.4 16.8

Japan 18,815 19,087 – 1.4 1.4 1.4

Worldwide 1,571,895 1,469,597 + 7.0 9.8 9.4

Volkswagen Passenger Cars 920,209 849,306 + 8.3

Audi 251,268 248,139 + 1.3

Škoda 173,474 149,926 + 15.7

SEAT 100,619 108,752 – 7.5

Bentley 2,292 2,788 – 17.8

Lamborghini 639 526 + 21.5

Volkswagen Commercial Vehicles 123,379 110,141 + 12.0

Bugatti 15 19 – 21.1

1 Deliveries and market shares for 2007 have been updated to reflect subsequent statistical trends. 2 Overall markets in the USA, Mexico and Canada include passenger cars and light trucks.

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 9

> Business Development Net Assets, Financial Position and Results of Operations Outlook

VOLKSWAGEN GROUP DELIVERIES BY MONTH Vehicles in thousands

650

600

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400 2008

2007 350

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Sales trends in the individual markets are as follows. In Germany, demand for Group vehicles in the first three months of 2008 was 2.6% higher than in the previous DELIVERIES IN EUROPE/REMAINING MARKETS year, in which delivery figures had been negatively In Western Europe, the Volkswagen Group recorded a impacted above all by the VAT increase on January 1, slight year-on-year decline in its deliveries to customers in 2007. The Golf, Eos, Caddy and SEAT Leon models also the period from January to March 2008. This region generated impressive growth rates. Six of the Volkswagen accounted for the largest proportion of vehicle sales in the Group's models led the German registration statistics in reporting period, at 49.1% (52.9%) of the Group's total their respective segment in the first quarter of 2008: the delivery volume. The Volkswagen Passenger Cars brand Polo, Golf, Passat, Touran, Tiguan and Multivan/ recorded an increase of 1.5%. Volkswagen Commercial Transporter. In 2008, the Golf once again heads the list of Vehicles delivered 4.3% more vehicles to customers. all newly registered vehicles in the German passenger car Demand for the Polo, Golf, Audi A3, Audi A5, Audi A8, and market. The Group's market share in the reporting period Škoda Fabia Hatchback models also increased. Sales was 32.3%, which is above the high level of the previous figures for the Caddy continued to increase. The new Golf year. Variant and Tiguan models met with a very positive In the main markets of Central and Eastern Europe, reception in the market. The Volkswagen Group's market the positive trend from the previous year continued in the share of the overall Western European passenger car first three months of 2008. Deliveries to customers in market was unchanged at 18.6%. these markets increased by 18.1%. The highest growth rates were recorded in Russia and the Ukraine. Stronger demand was recorded in particular for the Polo, Jetta, Caddy, Multivan/Transporter, Škoda Roomster and Škoda Fabia Hatchback models.

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DELIVERIES IN NORTH AMERICA recorded above-average growth rates. Although the From January to March 2008, our sales to customers in Volkswagen Group's market share in Argentina declined to the steadily declining US passenger car market were only 22.8%, we still maintained our leadership. Demand for slightly less than in the same period in 2007. Demand heavy trucks and buses fell to 533 (598) units. grew for the Golf, Eos and Audi TT models. In South Africa, the passenger car market again Our deliveries to customers in the Canadian passenger declined in the first three months of 2008 due to car market fell by 1.4% year-on-year. Sales figures for the continued restrictive lending. Demand for entry-level Golf and Audi A4 models increased. Our deliveries to models in particular fell sharply. The Volkswagen Group customers in Mexico during the reporting period were delivered 30.3% fewer vehicles to customers than in the 15.5% lower than in the previous year. However, there same period in the previous year. Its market share was an increase in demand for the Gol and Saveiro declined to 18.9%. models. DELIVERIES IN THE ASIA-PACIFIC REGION DELIVERIES IN SOUTH AMERICA/SOUTH AFRICA From January to March 2008, we delivered 28.9% more The positive trend of the previous year in the major South vehicles to customers in passenger car markets in the American passenger car markets also continued in the Asia-Pacific region than in the same period in 2007. This first quarter of 2008. The Volkswagen Group was able to was due above all to the sustained high level of demand for significantly increase deliveries to customers in these Group models in the Chinese passenger car market. markets compared with the previous year. Thanks to the Impressive growth rates were recorded here in particular strong demand for the Polo and Gol models, sales of Group by the Jetta, Passat and Audi A6 models. The newly vehicles in Brazil increased by 23.3% year-on-year. launched Škoda Octavia enjoyed great popularity. Deliveries in the Brazilian passenger car market also Although the Chinese passenger car market remains include the Saveiro and T2 light commercial vehicles, dominated by sales incentives offered by other manu- sales of which grew by 33.2% compared with the prior- facturers, our market share grew to 18.4%, further year period. Deliveries of heavy commercial vehicles that bolstering the market leadership. In the Japanese are produced in Brazil (trucks in the 5 to 45 tonnes weight passenger car market, which is declining again, the classes) were up by 49.3% year-on-year despite a more number of vehicles delivered to customers in the first difficult market environment. The Volkswagen Group's quarter of the year decreased slightly compared with the market share in this segment was 32.9%. The number of same period in the previous year. Demand increased for buses sold increased to 1,882 (1,704). the Touran, Passat saloon and Audi A3 models. In the Argentinian passenger car market, which Performance in the remaining Asia-Pacific markets continued to record positive growth, Group deliveries was mixed in the reporting period. While our delivery between January and March 2008 were 9.3% higher than figures in Taiwan declined, substantial growth was in the prior-year period. The Fox and Jetta models achieved in India and Australia.

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 11

> Business Development Net Assets, Financial Position and Results of Operations Outlook

WORLDWIDE DEVELOPMENT OF INVENTORIES The Volkswagen Group had a total of 314,888 active As a result of seasonal and volume-related factors, employees at the end of the first quarter. In addition, inventories held by Group companies and the dealer 9,175 employees were in the passive phase of their early organization worldwide on March 31, 2008, were up retirement and 8,000 persons were in apprenticeships. compared with the end of 2007 and March 31, 2007. On March 31 of this year, the Volkswagen Group employed Inventories remained at the level required to supply our a total of 332,063 persons, an increase of 0.8% compared customers. with the end of 2007. From January to March 2008, the number of persons employed by the Group in Germany UNIT SALES, PRODUCTION AND EMPLOYEES increased by 0.1% to 168,852. The proportion of The Volkswagen Group delivered 1,604,359 vehicles to the employees in Germany decreased to 50.8% (51.2%) dealer organization worldwide in the first quarter of 2008. compared with December 31, 2007. This corresponded to an increase of 6.9% compared with the same period in 2007. The volume of vehicles sold OPPORTUNITY AND RISK REPORT outside Germany increased by 8.0% because of the high With the exception of the positive effects of the planned level of demand for Group models in China and Brazil. consolidation of Scania on the Volkswagen Group's The number of vehicles sold in Germany rose by 0.7% deliveries and earnings mentioned in the Outlook on page year-on-year. The proportion of total sales generated in 15, there were no significant changes to the opportunity Germany was 14.9% (15.8%). and risk position compared with the presentation in the The Volkswagen Group produced 1,649,472 vehicles "Risk Report" and "Report on Expected Developments" of from January to March 2008, 5.9% more than in the first the 2007 Annual Report. quarter of 2007. Strong growth rates were reported by the production facilities in Mexico, Brazil, Poland and Slovakia as well as at the joint venture companies in China. The share of vehicles manufactured in Germany was 33.3% (36.2%).

CONSUMPTION AND EMISSION DATA

In accordance with Pkw-EnVKV (German Passenger Car Fuel Consumption and CO2 Emissions Information Regulation)

Model Output in Fuel consumption CO2 emissions kW (PS) (l/100 km) (g/km) urban extra-urban combined combined Bentley Brooklands 395 (537) 28.8 14.1 19.5 465 Lamborghini Gallardo LP 560/4 (E-Gear) 412 (560) 20.7 9.6 13.7 327 Lamborghini Gallardo LP 560/4 (manual gearbox) 412 (560) 22.0 10.0 14.7 351 BlueMotion 103 (140) 7.8 4.9 6.0 159

12

Net Assets, Financial Position and Results of Operations

AUTOMOTIVE DIVISION BALANCE SHEET STRUCTURE Since the Automotive Division's key figures also include On March 31, 2008, noncurrent assets in the Automotive the elimination of intra-Group transactions between the Division were slightly higher than at the end of 2007. Automotive and Financial Services divisions, and the Property, plant and equipment almost equaled the current financial liabilities of the primary Automotive carrying amount as of December 31, 2007. Current assets Division were lower than the loans granted to the increased by 7.7%, due firstly to a volume-related rise in Financial Services Division, the reportable figure for the the level of inventories and receivables. In addition, first quarter was negative. receivables and other financial assets increased mainly as Total assets in the Automotive Division were a result of a rise in the fair value of financial instruments. €79.8 billion on March 31, 2008. This represents an The Automotive Division's equity amounted to increase of 3.9% compared with the end of 2007. €26.7 billion at the end of the first quarter of 2008. Apart from the positive earnings development, the 7.5% FINANCIAL SERVICES DIVISION BALANCE SHEET STRUCTURE increase compared with the end of 2007 was primarily due At the end of the first quarter of 2008, total assets in the to the increase in the fair values of derivatives and to the Financial Services Division were 1.3% higher than on decrease in actuarial losses on pension provisions December 31, 2007. recognized directly in equity resulting from an increase in On the assets side, lower leasing and rental assets the discount rate. Noncurrent liabilities were €28.4 billion caused noncurrent assets to fall by 1.3%. Current assets (€28.5 billion). The financial liabilities contained in this increased by 4.9% on the back of the positive business figure were reduced by 3.1%. Current liabilities rose by development. At the end of the reporting period, the 5.4% compared with December 31, 2007 as a result of Financial Services Division accounted for approximately higher trade payables owing to volume-related factors as 47% of the Volkswagen Group's total assets. well as other liabilities. UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 13

Business Development > Net Assets, Financial Position and Results of Operations Outlook

At €7.2 billion, equity in the Financial Services Division equipment and higher capitalized development costs, net was at the same level as at the end of 2007. The positive cash used in investing activities was €0.3 billion lower than earnings effect was almost entirely eroded by the negative the comparable figure for the previous year, which was exchange rate effects recognized directly in equity. influenced to a great extent by equity investments. The Noncurrent financial liabilities increased by 5.8% Automotive Division's net cash flow fell by €1.0 billion compared with December 31, 2007, on account of the year-on-year to €0.9 billion. expansion of business. On March 31, 2008, deposits at Volkswagen Bank NET LIQUIDITY direct amounted to €11.2 billion (€9.6 billion). Net liquidity in the Automotive Division increased again in the first quarter of 2008. It amounted to €14.2 billion at INVESTMENTS IN PROPERTY, PLANT AND EQUIPMENT, the end of the reporting period, an increase of €0.7 billion AND CASH FLOW IN THE AUTOMOTIVE DIVISION compared with December 31, 2007. In the first quarter of 2008, investments in property, plant Since additional debt funding was required as a result and equipment in the Automotive Division amounted to of the increased business volume, the negative net €1.0 billion, a 25.0% increase on the same period in liquidity – common to the industry – in the Financial 2007. Among other things, capital spending related to new Services Division was €–52.9 billion, €0.5 billion higher production facilities, and to models to be launched in than at the end of 2007. 2008 and 2009. These include the new Audi Q5 and the At March 31, 2008, the Volkswagen Group's net successors to the current Gol, Golf, Audi A4 and SEAT liquidity improved by €0.2 billion compared with the end Ibiza models. The ratio of investments in property, plant of December 2007 to €–38.7 billion. and equipment (capex) to sales revenue was below the long-term average at 3.9% (3.2%). This clearly shows that SALES REVENUE OF THE VOLKSWAGEN GROUP we are continuing to pursue a policy of disciplined In the first three months of 2008, the Volkswagen Group's investment. sales revenue grew by 1.4% year-on-year to €27.0 billion. The Automotive Division's gross cash flow for the Sales revenue in the Automotive Division was period January to March 2008 was €2.0 billion €24.5 billion, up slightly on the 2007 level. The Group's (€2.2 billion). The year-on-year decline was due to higher sales revenue only reflects the positive development of our tax payments, among other factors. As in the previous sales in China in the form of increased deliveries of year, we recorded a cash inflow from working capital. vehicle parts; this is because our Chinese joint ventures However, due to a rise in the level of inventories and to a are accounted for using the equity method. In the first slower increase in the level of liabilities, this figure was quarter of 2008, the Financial Services Division generated €1.1 billion less than in 2007. As a result, cash flows from sales revenue of €2.6 billion (+8.8%). 76.1% (76.5%) of operating activities fell by €1.4 billion to €2.2 billion. Group sales revenue was generated outside Germany. Despite an increase in investments in property, plant and 14

EARNINGS DEVELOPMENT In the period from January to March 2008, the In the reporting period, the Volkswagen Group generated Volkswagen Group's operating profit was €1.3 billion, gross profit of €4.0 billion, thereby exceeding the previous up €0.2 billion on the comparative prior-year figure. year’s figure by 8.9%. Thanks to the higher sales revenue The financial result improved by €71 million to and the cost savings achieved, the previous year's gross €55 million due to higher income from equity-accounted margin of 13.7% increased to 14.7%. investments. Gross profit in the Automotive Division rose by 9.6% The Volkswagen Group generated a profit before tax of year-on-year in the first quarter of 2008 to €3.4 billion. €1.4 billion in the first three months of 2008, or Gross profit in the Financial Services Division amounted €0.3 billion more than in the prior-year period. The to €0.6 billion (+5.0%). The Group's distribution expenses Volkswagen Group's profit after tax increased by 25.6% increased by 3.2% to €2.3 billion because of the increased year-on-year to €0.9 billion. sales volume; the ratio of distribution expenses to sales revenue was 8.4% (8.3%). Administrative expenses were unchanged at €0.6 billion. As in the previous year, the Group's other operating result was €0.2 billion in the first quarter of 2008.

OPERATING PROFIT BY QUARTERS Volkswagen Group in € million

2,000

1,500

1,000

500

2008

2007 0

Q1 Q2 Q3 Q4

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 15

Business Development > Net Assets, Financial Position and Results of Operations > Outlook

Outlook

As expected, the performance of the global automotive in 2008 will exceed the record levels achieved in the markets varied from region to region in the first three previous year. We expect demand for Group vehicles to months of 2008. While overall demand increased by 1.9% increase substantially, especially in the Asia-Pacific, year-on-year, driven by positive developments in the Central and Eastern Europe, and South America regions. Central and Eastern Europe, South America and Asia- We are constantly improving our processes and Pacific regions, the number of new registrations declined systematically pursuing our disciplined approach to cost in South Africa, North America and Western Europe. management. Together with the higher sales revenue Global economic conditions will remain difficult in resulting from the expected increase in unit sales, this will 2008, with persistently high commodity and energy prices help lift our operating profit for 2008 above the previous as well as the effects of the crisis on the US real estate year’s figure. market causing considerable strain. As a result of upfront expenditures on new products, In view of this, we assume that the global automotive powertrains and production facilities, the ratio of markets will grow at a slower pace in 2008 compared with investments in property, plant and equipment (capex) to the previous year. We expect double-digit growth rates in sales revenue will be at a competitive level of around 6%. Russia, India and China. Growth will slow somewhat in In addition, we continue to expect a positive net cash South America, but will remain double-digit. By contrast, flow and a further improvement in the Automotive demand in Western Europe and the USA is likely to Division’s liquidity position. stagnate or fall slightly. Subject to antitrust approvals, we will add another The brand diversity of the Volkswagen Group is a successful brand to the Group in 2008 in the shape of critical competitive advantage. Almost all Group brands Scania. This will be accretive to both deliveries and will launch attractive new models in 2008. We are thus earnings. The above forecasts do not take into account the selectively expanding our product portfolio and moving effects of the acquisition of further shares of Scania on into additional market segments. For this reason, we are volume, earnings and financing data. assuming that deliveries to Volkswagen Group customers

This report contains forward-looking statements on the business development of such as Western Europe (and especially Germany) or in the USA, Brazil, China, or the Volkswagen Group. These statements are based on assumptions relating to Russia will have a corresponding impact on the development of our business. The the development of the economic and legal environment in individual countries same applies in the event of a significant shift in current exchange rates relative and economic regions, and in particular for the automotive industry, which we to the US dollar, sterling, yen, Brazilian real, Chinese renminbi and Czech koruna. have made on the basis of the information available to us and which we consider In addition, expected business development may vary if the assessments of value- to be realistic at the time of going to press. The estimates given entail a degree of enhancing factors and risks presented in the 2007 Annual Report develop in a way risk, and the actual developments may differ from those forecast. Consequently, other than we are currently expecting. any unexpected fall in demand or economic stagnation in our key sales markets,

16

Brands and Business Fields

SALES REVENUE AND OPERATING PROFIT BY BRAND unfavorable exchange rates were more than offset by the AND BUSINESS FIELD increase in volume sales and further improvements in The Volkswagen Group's sales revenue in the first quarter material costs. of 2008 was €27.0 billion, up 1.4% year-on-year. Sales In the period from January to March 2008, the Audi revenue was affected by the continued unfavorable brand generated unit sales of 313 thousand vehicles, exchange rates. At €1.3 billion, operating profit was thereby slightly exceeding the figure for the same period 20.9% higher than the year before. in 2007. Demand for the Audi A3, Audi A4 saloon, Audi A5 In the first three months of 2008, sales by the and Audi A8 was particularly encouraging, as was also the Volkswagen Passenger Cars brand increased by 0.8% case with the new Audi A3 Cabriolet. At €8.3 billion, sales year-on-year to 899 thousand vehicles. The most revenue fell by 4.4% year-on-year, owing primarily to significant growth rates were recorded by the New Beetle exchange rate effects. However, operating profit increased Cabriolet, Jetta, Gol, Touareg and Phaeton models. There by €113 million to €514 million as a result of further was also strong demand for the new Tiguan and Golf product cost optimization and qualitative growth. The Variant models. Sales revenue was €18.1 billion, up figures for the Lamborghini brand contained in the key marginally on the 2007 level. Operating profit increased figures for Audi also recorded positive growth in the by €75 million to €461 million. The negative effects of the reporting period.

VOLKSWAGEN KONZERN

Division/ Automotive Division Financial Services Segment Division Brand/ Volkswagen Audi Škoda SEAT Bentley Volkswagen Other Dealer and customer Business Field Passenger Commercial financing Cars Vehicles Leasing Insurance

Fleet business

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 17

In the first quarter of 2008, Škoda sold 176 thousand The Bentley brand generated sales revenue of €338 vehicles, an increase of 10.5% compared with the year million in the first three months of 2008, 4.3% less than before. There was strong demand for the Fabia in the comparative prior-year period. Negative exchange Hatchback, Fabia Combi and Octavia saloon models. Sales rate effects were the main reason for the reduction in sales revenue rose by 8.5% year-on-year to €2.2 billion. The revenue, although unit sales rose slightly. Operating profit Škoda brand generated an operating profit of €182 increased to €39 million (€38 million). million, up €10 million on the previous year. This figure In the first quarter of this year, Volkswagen was affected by the unfavorable exchange rate of the Czech Commercial Vehicles sold 123 thousand vehicles, 15.8% koruna against the euro. more than in the previous year. All key models recorded The SEAT brand recorded sales of 104 thousand rising unit sales. Sales revenue increased by €0.4 billion to vehicles during the reporting period, 2.6% more than in €2.6 billion. Driven by the positive sales situation, the first quarter of 2007. Demand for the Ibiza and Leon together with productivity improvements and cost models was particularly encouraging. Sales revenue was at optimization, operating profit increased by €37 million the same level as the prior-year period. Thanks to the year-on-year to €103 million. systematic continuation of the program introduced to With operating profit of €276 million (€258 million), improve earnings performance, operating profit increased the Financial Services Division again made a significant by €23 million to €12 million. contribution to the Volkswagen Group's operating profit in the reporting period.

KEY FIGURES BY BRAND AND BUSINESS FIELD FROM JANUARY 1 TO MARCH 31

Vehicle sales Sales revenue Sales to third Operating result parties thousand vehicles/€ million 2008 2007 2008 2007 2008 2007 2008 2007 Volkswagen Passenger Cars 899 891 18,092 18,010 14,475 14,597 461 386 Audi 313 309 8,294 8,679 5,079 5,389 514 401 Škoda 176 160 2,203 2,031 1,557 1,494 182 172 SEAT 104 101 1,424 1,486 1,035 1,093 12 – 11 Bentley 2 2 338 353 313 331 39 38 Volkswagen Commercial Vehicles 123 107 2,597 2,204 1,940 1,505 103 66 1 VW China 283 209 – – – – – – 2 2 Other – 296 – 278 – 8,497 – 8,478 188 153 – 276 – 225 Automotive Division 1,604 1,501 24,451 24,285 24,587 24,562 1,035 827 Financial Services Division 2,562 2,355 2,426 2,078 276 258 Volkswagen Group 1,604 1,501 27,013 26,640 27,013 26,640 1,311 1,085

1 The sales revenue and operating profit of the joint venture companies in China are not included in the figures for the Group. The Chinese companies are accounted for using the equity method and recorded an operating profit (proportionate) of €73 million (€34 million). 2 Mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits. 18

UNIT SALES AND SALES REVENUE BY MARKET In the markets in South America/South Africa, unit sales In the first quarter of 2008, the Volkswagen Group's unit in the first quarter increased by 13.5% to 218 thousand sales in the Europe/Remaining markets region were units. Sales revenue improved by 18.2% to €2.7 billion.

932 thousand vehicles, 1.2 % less than in 2007. Sales In the Asia-Pacific region, including the Chinese joint revenue remained on a level with the previous year at ventures, a total of 328 thousand Group vehicles were sold €19.3 billion. in the reporting period, 33.3% more than in the year Group sales in North America rose by 5.7% to before. As a result, sales revenue there rose by 20.6% to 126 thousand vehicles. Growth in demand for the Golf, €2.1 billion. This figure does not include the sales revenue Gol and Eos models was very encouraging. As exchange of the Chinese joint ventures, as these are accounted for rates deteriorated further during the reporting period, using the equity method. sales revenue was €3.0 billion, 10.8% lower than in the previous year.

KEY FIGURES BY MARKET FROM JANUARY 1 TO MARCH 31

1 Vehicle sales Sales revenue thousand vehicles/€ million 2008 2007 2008 2007 Europe/Remaining markets 932 944 19,285 19,321 North America 126 120 2,957 3,317 South America/South Africa 218 192 2,708 2,291 2 Asia-Pacific 328 246 2,063 1,711 2 Volkswagen Group 1,604 1,501 27,013 26,640

1 All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. 2 The sales revenue of the joint venture companies in China are not included in figures for the Group and the Asia-Pacific market. UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 19

FINANCIAL SERVICES DIVISION In the first quarter of 2008, Volkswagen Bank Mexico In the first quarter of 2008, the Financial Services obtained the necessary licenses to operate as a direct bank Division continued the positive development of fiscal year and subsequently commenced business on April 1, 2008. 2007, once again contributing to the positive sales 0.6 million new finance, leasing and insurance situation of the Volkswagen Group. Going forward, the contracts were signed between January and March 2008; division will continue to maximize potential along the this was 1.0% less than in the same period in 2007. As at automotive value chain in close cooperation with the March 31, 2008, the total number of contracts was up Group brands; the financial services business will also be slightly on December 31, 2007. Although the number of expanded further. To this end, Volkswagen Financial contracts in the Customer Financing/Leasing area Services AG is investing €35 million in its Braunschweig increased by 0.8% to 4.5 million, it fell by 0.8% in the location this year. Service/Insurance area. The proportion of total vehicles In March 2008, Volkswagen Bank GmbH was voted delivered by the Group worldwide accounted for by "Best Brand" in the "Passenger Car Banks" category by vehicles leased or financed remained on the same high readers of the specialist magazine "auto, motor und sport" level as the previous year, based on unchanged credit for the second consecutive year. Above all, readers were eligibility criteria. At the end of the first quarter, won over by the automotive bank's customized mobility Volkswagen Bank direct managed 1,075,524 accounts, a packages. At present, the "Fan Package" is available for the year-on-year increase of 19.7%. new "United" special editions of the Polo, Golf, Golf Plus, Receivables relating to dealer financing increased by Touran and Sharan models. Volkswagen Bank GmbH also 0.6% compared with the end of December 2007. 7,458 topped the ranks in a financing comparison undertaken people were employed by the Financial Services Division by independent consumer magazine "Finanztest". It set at the end of the reporting period, a 2.2% increase on itself apart from the competition above all by its highly December 31, 2007. competitive conditions for both conventional and three- In the first quarter of 2008, we recorded a slight way financing, under which customers can choose increase in the number of contracts in our fleet between returning the vehicle, follow-up financing, or management business. On March 31, 2008, our LeasePlan paying the final installment. joint venture managed a total of 1.3 million vehicles.

20

Income Statement of the Volkswagen Group (Condensed)

Income Statement by Division for the Period January 1 to March 31

1 Volkswagen Group Automotive Financial Services € million 2008 2007 2008 2007 2008 2007 Sales revenue 27,013 26,640 24,451 24,285 2,562 2,355 Cost of sales 23,034 22,985 21,073 21,203 1,961 1,782 Gross profit 3,979 3,655 3,378 3,082 601 573 Distribution expenses 2,282 2,210 2,159 2,090 123 120 Administrative expenses 591 569 470 449 121 120 Other operating income/expense 205 209 286 284 – 81 – 75 Operating profit 1,311 1,085 1,035 827 276 258 Share of profits and losses of equity-accounted investments 185 110 159 78 26 32 Other financial result – 130 – 126 – 111 – 139 – 19 13

Financial result 55 – 16 48 – 61 7 45 Profit before tax 1,366 1,069 1,083 766 283 303 Income tax expense 437 329 350 214 87 115 Profit after tax 929 740 733 552 196 188

Earnings per ordinary share (€) 2.33 1.87 Diluted earnings per ordinary share (€) 2.31 1.85 Earnings per preferred share (€) 2.39 1.93 Diluted earnings per preferred share (€) 2.37 1.91

1 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 21

> Income Statement > Balance Sheet Statement of Recognized Income and Expense Cash Flow Statement Notes to the Financial Statements

Balance Sheet of the Volkswagen Group (Condensed)

Balance Sheet by Division as of March 31, 2008 and December 31, 2007

1 Volkswagen Group Automotive Financial Services € million 2008 2007 2008 2007 2008 2007 Assets Noncurrent assets 76,328 76,841 37,579 37,564 38,749 39,277 Intangible assets 6,931 6,830 6,839 6,736 92 94 Property, plant and equipment 19,084 19,338 18,898 19,151 186 187 Leasing and rental assets 7,876 8,179 69 75 7,807 8,104 Financial services receivables 27,408 27,522 – – 27,408 27,522 2 Noncurrent investments and other financial assets 15,029 14,972 11,773 11,602 3,256 3,370 Current assets 72,973 68,516 42,201 39,190 30,772 29,326 Inventories 15,299 14,031 14,574 13,319 725 712 Financial services receivables 25,039 24,914 113 231 24,926 24,683 Current receivables and other financial assets 15,711 12,844 12,418 10,002 3,293 2,842 Marketable securities 7,299 6,615 7,192 6,503 107 112 Cash and cash equivalents 9,625 10,112 7,904 9,135 1,721 977 Total assets 149,301 145,357 79,780 76,754 69,521 68,603

Equity and liabilities Equity 33,852 31,938 26,670 24,802 7,182 7,136 Equity attributable to shareholders of Volkswagen AG 33,784 31,875 26,602 24,739 7,182 7,136 Minority interests 68 63 68 63 – – Noncurrent liabilities 58,457 57,351 28,398 28,509 30,059 28,842 Noncurrent financial liabilities 30,698 29,315 3,532 3,645 27,166 25,670 Provisions for pensions 11,797 12,603 11,680 12,481 117 122 3 Other noncurrent liabilities 15,962 15,433 13,186 12,383 2,776 3,050 Current liabilities 56,992 56,068 24,712 23,443 32,280 32,625 Current financial liabilities 27,480 28,677 – 2,019 – 1,139 29,499 29,816 Trade payables 9,637 9,099 8,810 8,202 827 897 Other current liabilities 19,875 18,292 17,921 16,380 1,954 1,912 Total equity and liabilities 149,301 145,357 79,780 76,754 69,521 68,603

1 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions, primarily intra-Group loans. 2 Including equity-accounted investments and deferred taxes. 3 Including deferred taxes.

22

Statement of Recognized Income and Expense of the Volkswagen Group

Statement of Recognized Income and Expense for the Period January 1 to March 31

€ million 2008 2007 Actuarial gains (pensions) 848 14 Available-for-sale financial instruments (securities):

Fair value changes taken directly to equity – 81 303

Transferred to profit or loss – 25 – 267

Cash flow hedges: Fair value changes taken directly to equity 1,376 135

Transferred to profit or loss – 333 – 93

Foreign exchange differences – 230 – 31 Deferred taxes – 513 – 42 Share of profits and losses of equity-accounted investments recognized directly in equity, after tax – 62 – Income and expense recognized directly in equity 980 19 Profit after tax attributable to shareholders of Volkswagen AG 929 740 Total recognized income and expense for the period 1,909 759

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 23

Income Statement Balance Sheet > Statement of Recognized Income and Expense > Cash Flow Statement Notes to the Financial Statements

Cash Flow Statement of the Volkswagen Group (Condensed)

Cash Flow Statement by Division for the Period January 1 to March 31

1 Volkswagen Group Automotive Financial Services € million 2008 2007 2008 2007 2008 2007 Profit before tax 1,366 1,069 1,083 766 283 303 Income taxes paid – 472 – 221 – 502 – 317 30 96 Depreciation and amortization expense 1,795 2,178 1,434 1,751 361 427 Change in pension provisions 38 42 35 40 3 2 2 Other noncash income/expense and reclassifications – 92 – 126 – 80 – 52 – 12 – 74 Gross cash flow 2,635 2,942 1,970 2,188 665 754 Change in working capital – 455 984 225 1,365 – 680 – 381

Change in inventories – 1,694 – 802 – 1,671 – 803 – 23 1

Change in receivables – 1,711 – 1,995 – 1,150 – 1,748 – 561 – 247

Change in liabilities 1,979 2,998 2,095 3,178 – 116 – 180 Change in other provisions 971 783 951 738 20 45 3 3 Cash flows from operating activities 2,180 3,926 2,195 3,553 – 15 373 Cash flows from investing activities – 2,899 – 3,643 – 1,328 – 1,669 – 1,571 – 1,974 of which: acquisition of property, plant and equipment – 972 – 787 – 958 – 767 – 14 – 20

capitalized development costs – 431 – 330 – 431 – 330 – – change in leasing and rental assets

(excluding depreciation) – 605 – 844 – 12 – 18 – 593 – 826

change in financial services receivables – 855 – 917 116 166 – 971 – 1,083 acquisition and disposal of equity

investments – 59 – 808 – 59 – 756 0 – 52

Net cash flow – 719 283 867 1,884 – 1,586 – 1,601 4 Change in investments in securities and loans – 1,186 – 516 – 1,257 – 517 71 1 Cash flows from financing activities 1,506 415 – 732 – 827 2,238 1,242 Changes in cash and cash equivalents due to exchange rate changes and to changes in the consolidated Group structure – 107 – 16 – 101 – 17 – 6 1 Net change in cash and cash equivalents – 506 166 – 1,223 523 717 – 357

Cash and cash equivalents at March 31 9,408 9,533 7,714 8,640 1,694 893 Securities and loans 10,064 7,695 8,017 5,911 2,047 1,784 Gross liquidity 19,472 17,228 15,731 14,551 3,741 2,677 Total third-party borrowings – 58,178 – 58,949 – 1,513 – 5,133 – 56,665 – 53,816 Net liquidity at March 31 – 38,706 – 41,721 14,218 9,418 – 52,924 – 51,139

For information purposes: at Jan. 1 – 38,900 – 42,293 13,478 7,133 – 52,378 – 49,426

1 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. 2 Relate mainly to fair value measurement of financial instruments, application of the equity method and reclassification of gains/losses on disposal of noncurrent assets to investing activities. 3 Before consolidation of intra-Group transactions €2,279 million (€3,989 million). 4 Including the loans previously reported under financing activities. Prior year restated.

24

Notes to the Financial Statements

Accounting in accordance with International Financial Reporting Standards (IFRSs)

Volkswagen AG has prepared its consolidated financial statements for fiscal year 2007 in accordance with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and the Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC). This Interim Report for the period ended March 31, 2008 was therefore also prepared in accordance with IAS 34. The interim consolidated financial statements were not reviewed by auditors.

Accounting policies

The same accounting policies and consolidation methods were generally applied to the preparation of the interim financial statements and the presentation of the prior-year comparatives as for the 2007 consolidated financial statements. A detailed description of the methods applied is published in the notes to the consolidated financial statements in the 2007 Annual Report. This can also be accessed on the Internet at www.volkswagenag.com/ir. A discount rate of 6 % was applied to German pension provisions in the accompanying interim financial statements. The increase in the discount rate reduced actuarial losses for pension provisions that are recognized directly in equity.

Basis of consolidation

In addition to Volkswagen AG, which is domiciled in Wolfsburg and entered in the commercial register at the Braunschweig Local Court under no. HRB 100484, the consolidated financial statements comprise all significant companies at which Volkswagen AG is able, directly or indirectly, to govern the financial and operating policies in such a way that the companies of the Group obtain benefits from the activities of these companies (subsidiaries).

Disclosures on the consolidated financial statements 1 Sales revenue

STRUCTURE OF GROUP SALES REVENUE

Q1 € million 2008 2007 Vehicles 20,937 21,409 Genuine parts 1,594 1,489 Other sales revenue 2,108 1,766 Rental and leasing business 1,378 1,178 Interest and similar income 996 798 27,013 26,640

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 25

Income Statement Balance Sheet Statement of Recognized Income and Expense Cash Flow Statement > Notes to the Financial Statements

2 Cost of sales

Cost of sales includes interest expenses of €652 million (previous year: €568 million) attributable to the financial services business.

3 Research and development costs in the Automotive Division

Q1 € million 2008 2007 % Total research and development costs 1,276 1,211 5.3 of which capitalized development costs 431 330 30.9

Capitalization ratio in % 33.8 27.2 Amortization of capitalized development costs 300 365 – 18.0 Research and development costs recognized in the income statement 1,145 1,246 – 8.2

4 Earnings per share

Basic earnings per share are calculated by dividing profit attributable to shareholders of Volkswagen AG by the weighted average number of ordinary and preferred shares outstanding during the reporting period. Earnings per share are diluted by potential shares. These include stock options, although these are only dilutive if they result in the issuance of shares at a value below the average market price of the shares. A potential dilutive effect arose in the reporting period from the fifth, sixth, seventh and eighth tranches of the stock option plan.

Q1 2008 2007 Weighted average number of shares outstanding Ordinary shares: basic million 291.4 287.2 diluted million 293.6 290.5 Preferred shares: basic million 105.2 105.2 diluted million 105.2 105.2

Profit after tax € million 929 740 Minority interests € million 0 0 Profit attributable to shareholders of Volkswagen AG € million 929 740

Earnings per share Ordinary shares: basic € 2.33 1.87 diluted € 2.31 1.85 Preferred shares: basic € 2.39 1.93 diluted € 2.37 1.91

26

5 Noncurrent assets

CHANGES IN SELECTED NONCURRENT ASSETS BETWEEN JANUARY 1 AND MARCH 31, 2008

Carrying amount Additions Disposals/Other Depreciation and Carrying amount € million at Jan. 1, 2008 changes amortization at Mar. 31, 2008 Intangible assets 6,830 457 14 342 6,931 Property, plant and equipment 19,338 947 102 1,099 19,084 Leasing and rental assets 8,179 1,184 1,133 354 7,876

6 Inventories

€ million Mar. 31, 2008 Dec. 31, 2007 Raw materials, consumables and supplies 2,416 2,225 Work in progress 1,468 1,365 Finished goods and purchased merchandise 11,380 10,425 Payments on account 35 16 15,299 14,031

7 Current receivables and other financial assets

€ million Mar. 31, 2008 Dec. 31, 2007 Trade receivables 6,598 5,691 Miscellaneous other receivables and financial assets 9,113 7,153 15,711 12,844

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 27

Income Statement Balance Sheet Statement of Recognized Income and Expense Cash Flow Statement > Notes to the Financial Statements

8 Statement of changes in equity

Subscribed Capital Retained Accumulated Equity Minority Total capital reserves earnings income and attributable interests equity expense to recognized shareholders directly in of VW AG € million equity Balance at January 1, 2007 1,004 4,942 23,549 – 2,591 26,904 55 26,959 Capital increase 1 21 – – 22 – 22 Dividend payment – – – – – 0 0 Recognized income and expense – – 740 61 801 0 801 Deferred taxes – – – – 42 – 42 – – 42 Other changes – – – 41 – – 41 3 – 38 Balance at March 31, 2007 1,005 4,963 24,248 – 2,572 27,644 58 27,702

Balance at January 1, 2008 1,015 5,142 27,166 – 1,448 31,875 63 31,938 Capital change 0 2 – – 2 – 2 Dividend payment – – – – – 0 0 Recognized income and expense – – 929 1,493 2,422 0 2,422 Deferred taxes – – – – 513 – 513 – – 513 Other changes – – – 2 0 – 2 5 3 Balance at March 31, 2008 1,015 5,144 28,093 – 468 33,784 68 33,852

The subscribed capital is composed of 291,378,237 no-par value ordinary shares and 105,238,280 preferred shares, and amounts to €1,015 million (previous year: €1,005 million). Volkswagen AG issued 40,970 (€104,883) new ordinary shares in the reporting period as a result of the exercise of bonds under the stock option plan. Capital reserves increased due to the premium from the capital increase. No amounts were withdrawn from the capital reserves.

9 Noncurrent financial liabilities

€ million Mar. 31, 2008 Dec. 31, 2007 Bonds, commercial paper and notes 24,011 23,265 Liabilities to banks 2,982 2,777 Deposits from direct banking business 1,614 1,199 Other financial liabilities 2,091 2,074 30,698 29,315

28

10 Current financial liabilities

€ million Mar. 31, 2008 Dec. 31, 2007 Bonds, commercial paper and notes 11,817 13,867 Liabilities to banks 5,177 5,082 Deposits from direct banking business 9,558 8,421 Other financial liabilities 928 1,307 27,480 28,677

11 Cash flow statement

The cash flow statement presents the cash inflows and outflows in the Volkswagen Group and in the Automotive and Financial Services divisions. Cash and cash equivalents comprise cash at banks, checks, cash-in-hand and call deposits. The net liquidity is presented on page 13 of this report.

12 Related party disclosures

Supplies and services rendered Supplies and services received Q1 Q1 € million 2008 2007 2008 2007 Unconsolidated subsidiaries 292 118 177 84 Joint ventures 501 379 63 80 Associates 2 23 50 6 Porsche and other related parties 1,255 1,026 77 16

UPDATED INFORMATION VOLKSWAGEN SHARE MANAGEMENT REPORT BRANDS AND BUSINESS FIELDS INTERIM FINANCIAL STATEMENTS (CONDENSED) 29

Income Statement Balance Sheet Statement of Recognized Income and Expense Cash Flow Statement > Notes to the Financial Statements

13 Contingent assets and liabilities

As of March 31, 2008, there were no material changes as against the contingent assets and liabilities described in the 2007 consolidated financial statements.

German Corporate Governance Code

The current declarations in accordance with section 161 of the Aktiengesetz (AktG – German Stock Corporation Act) on the German Corporate Governance Code by the Board of Management and Supervisory Board of Volkswagen AG, as well as those by the Board of Management and Supervisory Board of AUDI AG, are available on the Internet at www.volkswagenag.com/ir and www.audi.com respectively.

Significant events after the balance sheet date

There were no significant events after the end of the first three months of 2008.

Wolfsburg, April 30, 2008

Volkswagen Aktiengesellschaft The Board of Management

Contact Information

PUBLISHED BY Financial Calendar Volkswagen AG July 23, 2008 Finanzpublizität Interim Report January to June Brieffach 1848-2 October 30, 2008 38436 Wolfsburg Interim Report January to September

Germany

Phone +49 5361 9-0

Fax +49 5361 9-28282

INVESTOR RELATIONS Volkswagen AG Investor Relations Brieffach 1849 38436 Wolfsburg Germany Phone +49 5361 9-86622 IR Hotline Fax +49 5361 9-30411 E-mail: [email protected] Internet www.volkswagenag.com/ir

Volkswagen AG Investor Relations 17C Curzon Street London W1J 5HU United Kingdom Phone +44 20 7290 7820 Fax +44 20 7629 2405

Volkswagen Group of America, Inc. Investor Relations Liaison Office (Questions relating to American Depositary Receipts) Box OP / 4M01 3800 Hamlin Road Auburn Hills, Michigan 48326 USA Phone +1 248 754 5000 Fax +1 248 754 6405

The interim Report is also available on the Internet, in German and English, at: www.volkswagenag.com/ir

Printed in Germany 858.809.509.20